IREM Rule No.924 : Reckoning of Running Allowance as pay

924. Reckoning of Running Allowance as Pay:-

(i) 30% of the basic pay of running staff shall be reckoned as pay for the following purposes:-

(a) Entitlement to Passes and P.T.Os,
(b) Medical attendance and treatment,
(c) Educational assistance,
(d) Fixation of pay in stationary posts,
(e) Compensatory (City) Allowance,
(f) House Rent Allowance,
(g) Entitlement to quarter,
(h) Recovery of rent for quarters,
(i) Dearness Allowance/ Addl. Dearness Allowance,
(j) Overtime Allowance,
(k) Leave Salary.

(ii) For the purpose of educational assistance, 30% of the basic pay shall be reckoned as pay for determining the eligibility for all the scheme of assistance given to Railway employees for the education of their children/ ward viz. reimbursement of tuition fees, children’s educational assistance and subsidized hostels.

(iii) For the purpose of retirement benefits, 55% of basic pay shall be taken into account in the case of running staff retired/ retiring on or after 01.04.1979. 55% of basic pay shall also be reckoned as pay for the purposes of recovery of subscription towards Provident Fund.

(iv) When running staff are on leave (including casual leave) they shall be paid their leave salary based on their basic pay plus 30% thereof and the other allowances including Dearness Allowance/ Addl. Dearness Allowance due on such basic pay plus 30% thereof.

(v) For the purpose of deduction of Income-Tax, 30% of the actual Running Allowance earned by the running staff shall be reckoned as pay and the balance 70% of the Running Allowance shall be exempted under section 10(14) of the Income-Tax Act, 1951, with effect from the financial year 1982-83 (Assessment Year 1983-84).

(vi) The pay element in Running Allowance viz. 30% of basic pay is also reckoned as pay for the purpose of grant of Interim Relief in terms of Board’s letter No. PC-III-83/PC-IV/3(IR), dated 02.08.1983.

Note:–
(a) While 30% of the basic pay of running staff will be taken into account for the purpose of determining entitlement to Passes and PTOs, the members of the running staff who were already entitled to a higher class of Passes/ PTOs on regular basis as on 31.07.1981, shall continue to be eligible to such Passes/ PTOs.
(b) For the purpose of retirement been fits, 55% of basic pay shall count as pay for calculating pension and DCRG as well as for special contribution to PF Rules.
(c) While determining the emoluments for the purpose of calculation of retirement benefits, Dearness Pay as admissible from time to time, shall be calculated on basis of pay plus 30% thereof in the case of running staff retired/ retiring on or after 01.08.1981.

[Ref: Rule 25 of Running Allowance Rules]